Mr. Speaker, it is a great honour for me to launch the debate on Bill C-66, an act to amend the National Housing Act and the Canada Mortgage and Housing Corporation Act.
First I congratulate the Minister of Public Works and Government Services who is responsible for CMHC for providing us with such a progressive and balanced piece of legislation.
Indeed Bill C-66 will simplify the National Housing Act by removing unnecessary restrictions, enabling CMHC to respond quickly to the needs of Canadians and to opportunities in an ever changing market.
Since it was created over 50 years ago, CMHC has made an unparalleled contribution to help house Canadians. Over the years it has been involved in every aspect of housing from building units to direct financing, urban planning, mortgage insurance and now trade development.
The achievements of CMHC have benefited the country. Many of our own families and communities have been helped. Through partnerships with all levels of government, community organizations and the private sector, CMHC works to allow Canadians to obtain the shelter they need.
The government also works on a number of fronts to assist low income Canadians and the homeless. One important tool is the CMHC's renovation programs which have provided assistance to low income Canadians for over 20 years. The funds provide help to repair unhealthy and unsafe homes. They help to upgrade accommodations for the homeless, or for those at risk of becoming homeless, and to modify units for persons with disabilities.
Other CMHC initiatives such as Homegrown Solutions and the Canadian Centre for Public-Private Partnerships in Housing are fostering community based initiatives that address the problem of affordable housing, some of which are specifically directed at serving the needs of low income people.
All members will agree that we want to ensure the benefits provided to past generations of Canadians will continue to be available to future generations. Passing the legislation will help ensure that Canadians continue to have access to housing, have a choice of housing and benefit from new housing research.
The benefits of the bill are threefold. First, Canadians will benefit from these changes because CMHC will be able to respond to shifts in consumer demand and market conditions. They will also benefit from the availability of low cost funds and access to mortgage financing, no matter where they live in Canada.
Second, CMHC will be able to better promote Canadian housing products and services abroad. This will result in job opportunities for Canadians here and abroad. Third, CMHC will be able to provide better service to all Canadians.
I will illustrate how Bill C-66 reflects several of our government's priorities and what they mean to Canadians. I will begin with CMHC's mortgage loan insurance function, a key part of our efforts to provide Canadians with access to housing in all regions of the country.
In recent years CMHC has been approached to support many new and innovative products. Unfortunately under the current National Housing Act the CMHC has not been able to bring the benefits of some of these new types of home financing products to our marketplace.
With these amendments CMHC will have the flexibility to consider products such as insurance for a reverse equity mortgage enabling older homeowners to use the equity in their homes to obtain funds currently while allowing them to continue to live in their homes.
The CMHC would also be able to develop non-mortgage financing for remote areas where the land registry system does not facilitate mortgages. It would also include similar financing arrangements on Indian reserves where restrictions exist on providing land as security for mortgages.
The corporation would also be able to ensure a greater variety of financing options for the housing rental industry. Another benefit is that the CMHC will be able to respond quickly to shifts in consumer demand and market conditions with new and innovative home financing products.
With these legislative changes Canadians for generations to come will have access to the benefits of public mortgage insurance. By giving CMHC the means to better manage its business, these amendments will ensure that CMHC's mortgage insurance activities remain competitive while being managed in a financially responsible manner. With this new legislation the CMHC will be able to respond quickly to changes in domestic and international markets as well as to organizations looking to use Canadian housing expertise.
The legislation will greatly enhance the government's ability to better promote the products and services of our Canadian housing industry abroad. To illustrate this point, I will use the minister's own participation in last fall's trade mission to Chile. Thirty housing industry representatives joined him on that mission. The delegation was made up of provincial and territorial governments, builders, manufactured housing suppliers, products and services providers, and urban planners. The members for the ridings of Kelowna and Québec also participated in the trade mission. The minister was pleased to lead this group of entrepreneurs and officials, successfully opening doors to Canadian exporters in this important Latin American market.
Through CMHC's market development programs and services it is anticipated that within one year following the mission this group of exporters will have generated over $35 million in new business, which translates into direct economic benefits to all Canadians.
Two more trade missions are planned for Korea and Germany in May and October 1999. Similar public-private sector collaborations have recently been undertaken with Poland and Germany. This is what I mean when I say the legislation will help the CMHC create job opportunities for Canadians here and abroad.
Consumers in the housing industry, indeed taxpayers of Canada, all stand to benefit from these amendments which will result in a modernized and more efficient approach to housing. The corporation's greatest strength has been its ability to identify and respond to emerging needs.
Such initiatives are developed either by CMHC on its own or in partnership with other governments or the private sector. CMHC either moves once the private sector players have developed the ability to take on the challenge or becomes part of the ongoing solution.
The amendments that are presented today will build on CMHC's ability to adapt to changing circumstances and help the corporation to carry out the government's vision for the future of housing.
Earlier I mentioned that these amendments reflect our government's priorities. This is demonstrated in several ways. For example, one of our government's top priorities is its commitment to stimulating job creation and economic growth. We are proud of the fact that more than 1.6 million new jobs have been created since the government was elected in 1993.
However we want to do more. We know that the housing sector is a key component of the economy, with considerable job creation potential. For every $100 million spent on construction, 1,500 person years of employment are created both directly and indirectly. Behind every construction worker many other workers are producing the materials needed to build a home.
Clearly the objectives of the housing industry and the government's goals of expanding international trade and stimulating economic growth are one and the same.
CMHC is proud of its record in participating in team Canada trade missions to many of the emerging world markets, unlocking opportunities for the Canadian housing industry and creating jobs at home. Canada's international reputation for excellence in housing technology helps to open doors to the Canadian housing industry in many foreign markets.
The corporation has helped foster that reputation through international representation and research. Now, through the Canadian Housing Export Centre, CMHC continues to play a key role in supporting the efforts of Canadian housing firms to market their products and their expertise abroad.
CMHC has also been a leader in helping to establish and research new building practices. The result has been improved housing quality, affordability and choice for Canadians. In so doing the corporation supports research and development, another one of our government's top priorities. As we can see, CMHC is helping our government turn its commitments into action in a wide variety of areas.
The amendments proposed in the bill will enable the corporation to continue these achievements by providing it with the tools it needs to move forward with its expanded role. At the same time the corporation will be able to ensure the long term viability of its mortgage loan insurance function.
Millions of Canadian families bought their first home thanks to the insurance program. In fact, one in three Canadian homebuyers have been helped by CMHC in this way. Through the bill we want to ensure that future generations of Canadians can continue to benefit from this service.
As one of Canada's oldest crown corporations, CMHC has always been a pioneer. As such, it has introduced government to a new way of delivering services. At the same time CMHC's core mission is not all that different from what it was 10 or even 50 years ago. Through the legislation the corporation will be able to continue to do what it has always done and will be able to do it well.
The bill to amend CMHC is part of the government's broader efforts to modernize government operations and ensure the efficient use of taxpayers dollars while improving services to clients.
CMHC will continue its most important basic function which is to help provide homes for Canadians. I encourage all members of the House to support the legislation and enable the Canada Mortgage and Housing Corporation to carry on with its work well into the new millennium.